In order for a holder to acquire the rights and privileges of an HDC, an instrument must be transferred directly from the HDC to the holder.

Question

Quizplus · Accepted Answer

A holder can acquire the rights and privileges of a holder in due course (HDC) from any prior holder, not necessarily directly from the HDC, as long as the instrument meets the requirements for HDC status under the Uniform Commercial Code (UCC).

In Order for a Holder to Acquire the Rights and Privileges